Taking out a commercial mortgage is one way of maximising your business finance. Property can be a significant cost for many businesses so it is important to manage that investment wisely.
Features and benefits
A commercial mortgage from TSB is an ideal way of purchasing or remortgaging commercial property.
Interest rate reduced by 1% as part of the Funding for Lending Scheme*
Mortgages start from £25,001
Choose a loan term of up to 25 years
We can lend up to 70% of the value of the property and in some cases we can lend more
Bank rate linked and fixed rates** are available
For a bank rate linked mortgage you can apply for flexible capital repayment holidays of up to two years (to be taken in blocks of three months)
If you choose a fixed rate**, your repayments will remain the same even if bank rate rises or falls
If you repay part or all of your fixed rate* mortgage before the end of the agreed term there may be a break cost***
There is no break cost*** for bank rate linked mortgage
An arrangement fee will apply, up to 1.5%**** and dependent on the amount you borrow
Security fees are applicable
Any property given as security which may include your home, may be repossessed if you do not keep up repayments on your mortgage or other debts secured on it.
All lending is subject to a satisfactory credit assessment and we will need your permission to carry out a credit check on you and your business.
You should not apply for an amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action.
Before you apply
To apply for a business loan from TSB you will need to confirm the following:
How many months you would like to make the repayments over
Tell us about your plans and needs, and we will then agree the interest rate with you. An arrangement fee, security and valuation charges will apply.
*TSB is a market participant of the Bank of England’s Sterling Monetary Framework (SMF) and as such is eligible to apply for usage of the Bank’s operations in the sterling money markets, which includes the Funding for Lending Scheme (FLS).
For interest only, the actual amount borrowed doesn't reduce during the life of the mortgage so you need to repay the full capital amount at the end of the mortgage term.
We will require a first legal charge over the property as security. This means if you are remortgaging an existing property, any loan secured on it must normally be repaid before completion.